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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Practice questions chapter 21
Dear Mike,
I am having some trouble understanding when to include bonus fraction and when not to.
For practice question number 1, the solution is calculated as if the bonus issue was made at the beginning of the year. It is calculated by dividing the year into 2 parts, before and after rights issue.
On the other hand, in question 4 solution, it is calculating the WANES by dividing the year into three parts, before bonus issue, after bonus before rights, after rights.
Am I not understanding the question correctly?
Why are they not consistent?
Thank you so much!
They ARE consistent
Look at “The Rules” in the course notes
Read what those rules say, very carefully
If you don’t understand either of those rules, post again
But if you DO understand them, then try those two examples again … but follow The Rules very, very precisely